Active Commercial AidData Chinese Aid

Bank of China contributes $80 million to 7-year tranche of $1 billion dual-tranche syndicated loan facility to Malaysia Airlines (Linked to Record ID#97871)

$80M USD

Funder	Bank of China (BOC)
Recipient Organization	Malaysia Airlines Berhad (Penerbangan Malaysia)
Country	Malaysia
Start Date	Jun 01, 2004
End Date	May 25, 2031
Duration	9,854 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`107686`

Grant Description

Bank of China contributes to USD 1 billion dual-tranche syndicated loan facility to Malaysia Airlines In June 2004, a group of banks -- including Bank of China's Hong Kong and Singapore branches -- signed a $1 billion syndicated dual-tranche loan facility agreement with Malaysia Airlines Berhad (Penerbangan Malaysia).

The loan had two tranches -- a five-year and a seven-year tranche -- and was guaranteed by the Malaysian Ministry of Finance.

📋 Loan / Grant Terms

💰 Loan Amounttranches are unknown

The proceeds of the facility were to be used by the borrower for unspecified corporate purposes.

Bank of China's Hong Kong Branch contributed $120 million as a mandated lead arranger to the facility, while Bank of China's Singapore Branch contributed $40 million as an arranger. Bank of China's overall contribution was $160 million.

Other members of the syndicate included mandated lead arrangers Mizuho Corporate Bank, contributing $100 million, Bank of Tokyo-Mitsubishi, contributing $91 million, SMBC, contributing $75 million; HSBC, contributing $61 million, Calyon and Standard Chartered, contributing $50 million each, and Bumiputra-Commerce Bank, contributing $43 million.

Lead arrangers included: UOB contributing $90 million, KfW, National Australia Bank, OCBC, Shinkin Central Bank, and UFJ Bank (Luban) contributing $50 million each.

Lead managers included: AmMerchant Bank, Citibank (Malaysia), and Farmers Bank of China (now Taiwan Cooperative Bank), contributing $10 million each.

📋 Staff Comments

Malaysia Airlines Berhad (Penerbangan Malaysia) is a Malaysian state-owned company.
Due to a lack of information on specific loan terms for the two tranches, AidData assumes equal transaction amounts for each tranche. $160 million is thus captured in two $80 million records separated by tranche.
The five-year tranche is captured in #97871, and the seven-year tranche is captured in #107686.
Bank of China contributed a total of $160 million to the syndicated facility: $120 million through its Hong Kong Branch and $40 million through its Singapore Branch. For database purposes, Bank of China is coded as the funding agency, while branch-level contributions are detailed here. Of this, $80 million is attributed to the 7-year tranche (this record, #107686), while the 5-year tranche is captured separately in Record ID #97871.

📚 Sources & References

Asia Loans Flow
Trade Journal Malaysia; Euroweek ; London Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Malaysia Airlines Berhad (Penerbangan Malaysia)

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